What rights does the Lease Agreement Rider grant to Beard Papas?
Beard_Papas Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not review the terms of the lease for your Shop Location but require that your landlord acknowledge our rights as set forth in the lease agreement rider attached as Exhibit 4 to the Franchise Agreement (the "Lease Agreement Rider") and that you collaterally assign the lease to us as set forth in the collateral assignment of lease attached as Exhibit 5 to the Franchise Agreement (the "Collateral Assignment of Lease"). We possess the right to disapprove of a proposed lease if the landlord refuses to sign the Lease Agreement Rider in substantially the form set forth in Exhibit 4 to the Franchise Agreement. The Lease Agreement Rider grants certain rights to us, including our right to be notified in the event of a lease default and, potentially, for us to enter the premises of your Shop.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 26–29)
What This Means (2025 FDD)
According to Beard Papas's 2025 Franchise Disclosure Document, Beard Papas does not review the lease terms for a franchisee's shop location. However, Beard Papas requires that the landlord acknowledge their rights as outlined in the Lease Agreement Rider, which is attached as Exhibit 4 to the Franchise Agreement. Additionally, the franchisee must collaterally assign the lease to Beard Papas, as detailed in the Collateral Assignment of Lease attached as Exhibit 5 to the Franchise Agreement. Beard Papas retains the right to disapprove a proposed lease if the landlord refuses to sign the Lease Agreement Rider in the form presented in Exhibit 4.
The Lease Agreement Rider grants specific rights to Beard Papas. These rights include the right to be notified if the franchisee defaults on the lease. Furthermore, Beard Papas may have the right to enter the premises of the franchisee's shop.
This requirement ensures that Beard Papas has some control over the shop location, even though they do not directly negotiate the lease terms. By having the right to be notified of a lease default and the potential right to enter the premises, Beard Papas can protect its interests and the brand's reputation. This is a fairly common practice in franchising, as franchisors want to ensure the continuity of the business and maintain standards across all locations.